Department of Motor Vehicles: private industry partner fees.

Assembly Member Haney's proposal to regulate fees charged by private companies processing DMV transactions would cap charges by second-line business partners at 5% above standard DMV rates. The measure addresses the growing role of private vendors in handling vehicle registration, titling, and related services through state-authorized electronic processing programs.

The legislation requires these private partners to prominently display a link on their websites directing consumers to the DMV's own portal, accompanied by text noting that services can be obtained directly from the department without additional fees. This builds upon existing provisions that allow the DMV to contract with qualified private companies while maintaining oversight of their operations and fee structures.

Under current law, the DMV sets maximum charges for private vendors and adjusts them annually based on the California Consumer Price Index. The department also collects transaction fees from these partners - a base fee of $3 per transaction plus a temporary $1 fee for system improvements. These fees are deposited in the Motor Vehicle Account, with the supplemental charge set to expire once sufficient funding for technological upgrades has been secured or by December 31, 2023, whichever comes first.